Search Results: 'average variable cost'
"Biologists want to set up a station to test alligators in the lake for West Nile Virus. Suppose that the costs for such a station are $2,500 for setup costs and $3.00 to administer each test.... More >
a. Write an expression that gives the total cost to test x animals.
b. Write the expression that gives the average cost per animal.
Short Run Cost Function
"The short-run cost function of a company is given by the equation TC=200+55q, where TC is the total cost and q is the total quantity of output, both measured in thousands.
(a) What is the... More > company’s fixed
(b) If the company produced 100,000 units of goods, what is its average variable cost?
(c) What is its marginal cost per unit produced?
(d) What is its average fixed cost?
Supply Curve for a Constant-Cost
Calculate the Long run industry supply curve for a constant-cost industry, Marginal cost, Average total cost, output.
Cost Accounting Same Net Income
"a) What is Wilson’s break-even point in cases of widgets for the current year?
b) What selling price per case must Wilson charge to cover the 15% increase in variable production costs... More > (the 15% increase includes all variable costs associated with this problem) and still maintain the current contribution margin percentage?
c) What is the number of units that Wilson must achieve in the coming year to maintain the same net income after taxes as projected for the current year if the selling price of widgets remains at $9.60 per case and the variable production costs of widgets increase 15%?
Decision Making Under Monopoly
"What should the monopolist do?
1. Shut down
2. Increase output – to reduce economic loss
3. Decrease output
4. Increase output – to increase positive profit
Micro Economics Revenue Draw
"a. For the product shown, assume that the minimum point of each firm’s average variable cost curve is at $2. Construct a demand and supply diagram for the product and indicate the... More > equilibrium price and quantity.
b. On the graph, label the area of consumer surplus as f. Label the area of producer surplus as g.
c. If the equilibrium price were $2, what would be the amount of producer surplus?